Longtime Pismo Beach restaurant building may be torn down. What would replace it?
A planned renovation to the northern entrance of Pismo Beach could see a century-old restaurant building and an abandoned gas station demolished to make way for new mixed-use gateway development.
On Tuesday, Pismo Beach’s Planning Commission will hear a proposal from developer Coastal Community Builders to redevelop a two-block triangular wedge of land between Price and Dolliver streets, replacing several buildings and the existing parking lot with new mixed-use residential and commercial structures.
Among those buildings on the chopping block is the longtime home of the since-closed Shell Cafe, which more recently is the location of Oasis Moroccan Restaurant.
The new structures would stand three stories tall and would consist of four commercial condominium spaces and 39 residential units, with four residential units deed restricted as affordable housing, according to the staff report.
At the corner of Price and Dolliver streets, the existing gas station would be demolished and replaced with a “gateway” plaza for public use.
The mixed-use space is planned to occupy most of the block on the other side of Bay Street that includes the Oasis building, a parking lot and a handful of existing homes, according to the staff report.
“We are looking forward to transforming this site, along with its handful of aging cottages, into 39 beautiful new homes, including five that will be deed-restricted for low-income residents,” Coastal Community Builders CEO Cam Boyd said. “This project will breathe new life into the critical gateway to downtown — bringing public amenities, additional housing and new retail space to a location within the city that has been neglected for many years.”
Old Shell Cafe, gas station, homes slated for demolition
The restaurant space on the corner of Price and Bay streets has seen plenty of minor redevelopments in the past five years.
Originally constructed in 1920 — and serving as a restaurant since at least 1924 — the building underwent a remodel to bring it in line with the Shell Cafe’s original appearance in 2017, though the business did not last much longer.
The building then became the home of Oasis Restaurant in 2019 after the Shell Cafe went out of business, undergoing another appearance change to its current form.
The deserted gas station at 1481 Price St. has been for sale for several years, and includes a large amount of parking lot space on its narrow end between Price and Dolliver streets.
In their place, two buildings are proposed: the gateway plaza and commercial space on the triangular lot and the 1.2-acre residential space on the other side of Bay Street.
The 33 two-bedroom condos would fall between 1,085 and 1,851 square feet, while the five studios would be 460 square feet and sole one-bedroom unit would be 808 square feet, according to the staff report.
By making five of the residential condos affordable, the project qualifies for a state density bonus that allows the building to include more units than would be normally allowed.
As is, 10 residential units are on the project site including one Section 8 federally assisted dwelling, according to the staff report. Coastal Community Builders will give first right of refusal on a comparable to displaced residents, along with relocation assistance, according to the report.
“Ultimately, the market will dictate the pricing for the non-deed restricted units, however this is envisioned as a premium product with nearby beach access and sweeping ocean views from most of the units,” Boyd said. “We assume that the pricing of the non-deed restricted units will reflect this.”
To get approval as proposed, the project needs to get the city’s OK on six requested waivers related to increased building height, lot coverage, a decrease in required landscaping, building encroachment on the front and side and fence screening height.
Boyd said if approved, the project will start construction in late 2025, with a two-year build-out timeline.
Whether the project will proceed as planned is not a sure thing, as it must get the Planning Commission’s approval, and could face appeals after the fact that would prolong or derail the approval process.
What will happen with Oasis restaurant if the project is approved is unclear.
When reached for comment Wednesday, Oasis’ owner declined to speak on the project, but said the restaurant will stay open for the foreseeable future.
Current residents face uncertain future
Jimmy Townsend, 70, and his wife have lived in one of the 10 homes near the restaurant slated for demolition for the past 15 years.
Townsend, a musician who’s frequented the live music scene in the Five Cities area, said he has been under considerable stress trying to find a new place to live on a fixed income.
“Me and my wife are both 70 years old, and so we’re trying to look into affordable housing for seniors and that type of thing, but there’s so many Baby Boomers looking for the same thing, there’s a two-year waiting list,” Townsend said. “I’m probably gonna have to relocate out of the area, but even I don’t even know to where — maybe to Nevada or something.”
Townsend said he’ll make every effort to take advantage of Coastal Community Builders’ relocation assistance, but said he’ll miss living in Pismo Beach, as housing opportunities for his income level are on the way out.
“They’re putting these things up all over the place all over Grover Beach and Arroyo Grande, and I guess that’s just how the world’s going to be from here on out,” Townsend said. “I’m just an old hippie, but I’m just glad that I got to live in Pismo Beach when it was actually still a beach town and not a just strictly a tourist place.”
This story was originally published June 5, 2025 at 5:00 AM.
